Weak growth domestically, increased capital requirements due to Solvency II, the continuing low interest rate and other factors pose major challenges to the insurance industry. Medium-sized and smaller life, health, damage and accident insurers are particularly affected by this. Measures for improving governance and transparency are being discussed above all in the context of the IORP II proposals for occupational pension institutions – particularly pension funds. At about the same time, the implementation of a unified accounting model for insurance contracts as per IFRS 4 (revised exposure draft of the IASB from June 2013) is making progress.
In this dynamic environment, we provide support for the initiation and implementation of sustainable strategies. Along with our colleagues in the international BDO network we support German insurers abroad.
The Corporate Finance | Financial Services team has extensive experience with M & A transactions and evaluations of insurers. We are involved in the BDO Industry Expertise Centre for Insurance and advise multinational companies as well as medium-sized insurance groups, special-focus insurers, pension funds, reinsurance companies and investors.
Strategic initiatives, opportunities/risks of planned transactions, restructuring and ways for successful implementation are constantly the focus of our activities.
Examples of our current consultancy mandates for insurers include:
- Evaluation of a specialist insurer
- M & A sell side mandate for a German property insurer
- Support for a financial group in the sale of a property insurance company (M & A sell side)
- Buy-side due diligence support
- Preparation of an insurer for a capital increase
- Consultancy for an insurance company in converting a foreign subsidiary into a branch
- Calculation of capital requirements in line with Solvency II in the context of a planned M & A transaction